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BIZ
AL
DIGIT
BUSINESS REPORT

Star of the show

E-commerce seems certain to remain a highlight
within Vietnam’s digital economy into the future.

By NHI ANH

ietnam’s e-commerce sector has Temasek, and Bain & Company, the country’s ing new orders via e-commerce platforms,
now gone through ten years of out- e-commerce sector rose 11 per cent year- resulting from economic instability, dis-
V standing development, continually on-year in 2023. The market is projected ruptions to global supply chains, fiercer
posting growth in the range of 16-30 per to grow at a compound annual growth rate competition, and especially shortcomings
cent a year. Growth of 18-20 per cent is (CAGR) of 22 per cent to 2025, with total at businesses, such as failing to choose
forecast for 2024, with revenue on busi- product value estimated at $24 billion. the right target market or lacking appro-
ness-to-consumer (B2C) online retail plat- Figures from e-commerce data platform priate production and business plans.
forms predicted to reach an estimated Metric’s 2023 Online Retail Market
VND650 trillion ($26.5 billion). Overview and 2024 forecast, also released 2024 trends
recently, put B2C e-commerce revenue at Many new forms of shopping developed
Outstanding growth nearly VND500 trillion ($20.4 billion) last strongly last year, most typically livestream-
E-commerce continues to be a popular year and an estimated VND650 trillion ing and multi-channel sales, which brought
modern shopping channel for enterprises ($26.5 billion) this year. significant revenues to professional sellers.
and consumers alike and is also a pio- Vietnam is leading the way in Southeast Recent studies show that e-commerce can
neering feature of the digital economy. Asia in e-commerce growth, with product expect changes in trends this year and
Figures from the Vietnam E-commerce sales via retail e-commerce platforms to stand the next few years as mobile commerce
and Digital Economy Agency at the Min- at over VND310 trillion ($12.6 billion) in grows strongly.
istry of Industry and Trade reveal that the 2024, a year-on-year increase of 35 per cent. The development of social media com-
size of the country’s retail e-commerce Figures also reveal that there were merce has also changed the way people
market was estimated at $20.45 billion in 2.2 billion product units successfully discover, choose, and buy products online.
2023, up 25 per cent against 2022. delivered in 2023 on the country’s five This is forecast to continue growing strongly
Vietnam was recognized by Statista as largest e-commerce platforms - Shopee, in 2024, offering new opportunities for
being among the top 10 countries in the Lazada, Tiki, Sendo, and TikTok Shop - businesses to access and attract customers.
world in terms of e-commerce growth as for a 52.3 per cent increase against 2022; According to a recent study from Meta,
of December, 2023. An estimated 61 million the highest in the last three years. There some 45 per cent of consumers often buy
people engage in online shopping, with are currently 637,273 shops on Shopee, products at e-commerce platforms after
an average annual spend of $300 each. Lazada, Tiki, and Sendo. seeing related information on Facebook
According to the recent Southeast Asia However, 2023 witnessed a decline of or Instagram, while 20 per cent of con-
Digital Economy report from Google, 1.3 per cent in the number of shops receiv- sumers buy products directly via Facebook.

42 Vietnam Economic Times April 2024 en.vneconomy.vn